KHAS CHHETRIS CALL OFF STRIKE

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KHAS CHHETRIS CALL OFF STRIKE
Kathmandu, 24 Feb: Khas Chhetris Thursday night called off strike of 16 eastern region districts pressing nine demands, including inclusion of
the country’s ethnic group in the indigenous group.
The group launched a movement the same day.
The movement was called after a government invitation for
talks.
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PM BHATTARAI TO LOOK AFTER COMMUNICAIONS
MINISTRY
Kathmandu, 24 Feb.: Prime Minister Baburam Bhattarai will look after the ministry of information and communication after Minister Jayaprakash Prasad Gupta,who is also Chairman of MPRF-R was convicted this week by the
supreme court for corruption n sent o jail for 18months in the
first court indictment of an incumbent minister.
The Bhattarai government Thursday communicated the court decision to President Dr. Ram Baran Yadav who raised Gupta’s threats of possible
snapping of ties between terai and the central government.
The president raised the issue with Premier Bhattarai this month before the court verdict.
Deputy Prime Minister and Home Minister Bijaya Kumar
Gachedhar visited Gupta at the Dilli Bazzar Khor Thursday.
Gupta is lodged there along with his former NC ministerial
colleague Chiranjiri Wagle from the cabinet of Girija Prasad Koirala.
Supreme court is hearing corruption charges cases against former top n leaders KHum Bahadur Khadka and Govinda Raj Joshi.
Sharat Singh Bhandary, a Pahadi of MJFL headed by Gachedhar also lost his job when threatening possible severance of ties between terai and Kathmandu
Bhandari was defence minister in the Bhattarai government.
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HETAUDA ONLY 4 FOURS NOW FROM CAPITAL
Kathmandu, 24 Feb: Tiring and bumpy rides to Hetauda from Kathmandu via Kulekhani are a thing of the past now. A 26-km stretch of road from Dakshinkali to Kulekhani came into operation this week, making the road smooth and risk-free, The Kathamandu Post reports.
As of now, the Hetauda-Kulekhani-Kathmandu road is the only alterative to the busiest Prithivi Highway to reach the southern plains from Kathmandu. It will lose the shortcut-road title once the much-hyped fast-tracks from Kathmandu to Nijgad and other proposed routes like a shuttle tunnel and another fast-track from Hetauda to Sisneri come into service.
With the repair, the five-hour journey from the Capital to Hetauda has been shortened by more than one hour. Another part of the stretch—Hetauda to Kulekhani (around 25 km)—had been already blacktopped.
Joint-secretary at the Ministry of Physical Planning and Works (MoPPW) Ramesh Raj Bista and officials from the Department of Roads (DoR) and the Indian Embassy surveyed the condition of the repaired road as they drove out of Kathmandu to Hetauda.
“Now the road is very smooth,” said one of the officials.
The road was blacktopped with Indian assistance of Rs 90 million. “We have also requested India to assist in the other sections of this road, to which India is positive,” said the official.
More than 1,000 medium and small vehicles ply this route every day, of which, more than 500 are Tata Sumos, a popular public carrier.
Meanwhile, the government has also proposed construction of the 92-km Kanti Lok Path, another shortest road to connect Kathmandu with Hetauda and Birgunj. “The increasing population in Kathmandu and the need for a faster and reliable link to speed up economic development in the Valley demand urgent need to redevelop and upgrade Kanti Lok Path to make it a reliable alternative to connect Kathmandu with Hetauda and facilitate import and export from India,” the DoR website says.
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NEPAL ENCOUNTERS DIFFICULTIES IN EXTRADITING WANTED NEPALI FROM US FOR ALLEGED FINANCIAL FRAUD

Kathmandu, 24 Feb.:After the United States refused to extradite Pawan Kumar Karki, an absconding banking fraudster, Interpol has issued a diffusion notice in his name. This is expected to help increase the American Police’s surveillance on Karki, Prithvi Man Shrestha writes in The Kathmandu Post.
A diffusion notice is issued to ramp up police surveillance on the accused before a court convicts him/her. As per the diffusion notice issued on January 29, Karki, the former managing director of Capital Merchant and Finance Company, has been charged with misappropriating funds worth Rs 1.47 billion while providing loans to 20 businesses. According to Nepal Rastra Bank (NRB) officials, Karki, along with his 44 accomplices, have committed fraud of Rs 2.5 billion.
Karki migrated to the US a few years ago after he won the American government’s Diversity Visa Lottery. However, bringing him back home seems almost impossible at the moment.
As Nepal does not have the Extradition Act and has not signed the extradition treaty with the US, the latter refused to extradite Karki in response to Nepal’s request. The US had suggested measures such as issuing a red corner notice that may help his extradition.
Deputy Inspector General Upendra Kant Aryal, chief of the Central Investigation Bureau (CIB), said the diffusion notice was issued as the case against him is still under a court’s consideration. “Now, the US police will monitor his activities,” he said.
Aryal, however, said his extradition to Nepal is ‘very difficult’ due to the lack of the Extradition Act and extradition treaty between the countries. “Even a red corner notice is not sufficient without the extradition treaty,” he said.
The endorsement of the Extradition Bill, which has been tabled in the parliament along with bills on mutual legal assistance and organised crimes, would have paved the way for the signing of the extradition treaty. However, the government’s recent efforts to get the bills endorsed failed due to strong opposition from the Maoist hardliners.
“Even the mutual legal assistance act would have helped in initiating action against Karki as the act talks about taking as evidence decisions of courts of countries that are signatories to the mutual legal assistance agreement,” a government official said.
Karki is the main recipient of loans from the Capital Merchant against the banking norms. Directors and promoters having more than 1 percent stake in any bank or financial institution cannot take loans from their institution.
However, Karki and his accomplices received loans as high as Rs 2.5 billion, out of the total loans worth Rs 3 billion sanctioned by Capital Merchant, according to the central bank.
The central bank said the company’s lending worth about Rs 500 million are at good hands and up to Rs 1.5 billion can be recovered from the collaterals put up by Karki and his accomplices. An additional Rs 1 billion is required to restore the company’s good health, according to NRB.
The police have already arrested Shabhu Bahadur KC, former managing director and chief accomplice of Karki, who issued loans in the name of fake companies to provide funds to Karki. KC is Karki’s father-in-law. Other arrestees include Amirjung Khadka, Capital Merchant’s founder, and shareholder Januka KC.
The Finance Ministry had also found that Karki was involved in transferring the earnings of Nepali workers in South Korea to the US illegally.
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CHINA SEEKS OBSERVER STATUS IN SAARC IN ANTI-POACHING
NETWORK

Kathmandu, 24 Feb.: China has reiterated its commitment to play the role of an observer in South Asian Wildlife Enforcement Network (SAWEN) -- a mechanism of all eight South Asian countries formed to tackle wildlife poaching and trade across the region, Om Astha Rai reports in Republica.

In the first ever Nepal-China joint forestry working group meeting held Thursday in Kathmandu, the Chinese delegates led by Minister of State Forestry Administration of China, Jia Zhibang, assured the Nepali delegates that they would secure political consent for entering the SEWAN as an observer.

This is the first time that China has expressed its commitment at the political level to enter the SEWAN as an observer. As a central committee member of Communist Party of China (CPC), Forest Minister Zhibang is expected to persuade the Chinese leaders into taking an official decision to this effect.

Previously, China had expressed its commitment only at bureaucratic level to help curb wildlife poaching and trade across the region by participating in the SAWEN.

"The Chinese delegates´ commitment to participate in the SEWAN as an observer is very crucial to curbing wildlife trade," says Diwakar Chapagain, Wildlife Trade Control Coordinator at WWF Nepal.

"China is believed to be the biggest consumer of parts of endangered species, including Tiger. This means that we can not effectively control wildlife trade so long as there are demands for wildlife parts in China. Therefore, China´s entry into the SAWEN will be a significant step toward curbing wildlife poaching and trade," explains Chapagain.

However, Joint Secretary Ram Prasad Lamsal, the focal person for the Nepali delegates, says that it would be unwise to assume that China´s entry into the SAWEN would drastically curb wildlife trade in the region overnight.

"The practice of using wildlife parts as traditional medicines is not something that can be done away with by promulgating certain acts," argues Lamsal, who is also the spokesperson for the Ministry of Forest and Soil Conservation (MoFSC).

"The use of wildlife parts for medical purpose is a deep-rooted practice. It is like the existence of untouchability even after several laws outlawed it years ago in Nepal. Similarly, even if China bans the use of wildlife parts after entering into the SAWEN, it will take years for the Chinese people to stop using them," says Lamsal.

"China´s entry into the SAWEN will be marked as a milestone, though,"

The SAWEN was formally announced at an intergovernmental meeting organized by the Bhutan government in January last year. The SAWEN -- which has its secretariat in Nepal -- has yet not functioned effectively partly due to the delay in coaxing China into joining the regional anti-poaching network.

At the first day of the Nepal-China forestry meeting, Nepal also proposed to build Musk Deer Farming Centre, Biodiversity Education Centre and Zoological Garden in Shivapuri in collaboration with China. Nepal also proposed to develop a green economy corridor through the Tatopani border.
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CHINA BANK PROPOSES LOAN WEST SETI
Kathmandu, 24 Feb.: China´s Exim Bank interested in financing the 750-MW West Seti Hydropower Project has proposed Nepal to take commercial loans on top of soft loans for developing the project, saying its project cost was too huge to be realized in soft loans alone, Republica reports.

Exim Bank, to which the government requested for credit line of US$ 1.7 billion (about Rs 134 billion), has not disclosed how much it is willing to lend as soft loans though. “So, we have no idea of the volume it wishes to pledge under commercial loans,” said a Ministry of Finance (MoF) source.

The Chinese financier has also floated other options to the government, particularly if the government is not eager to take commercial loans. Under this, it has suggested to the government to consider options like inviting private equity, including foreign private investments, and mobilizing the shortfall fund under credit line facility.

“It has floated a number of options, seeking our clear vision on how we plan to carry the project forward,” said the senior MoF official. Following such response, MoF has requested the Ministry of Energy (MoE) to forward to it a clear view on how it envisages to develop the project.

Mainly, MoF has sought clarity on matters like whether the government would like to develop the project itself or under public-private (PP) investment. It has asked if the project is to be developed under PP model, who would lead the project and what options it has explored for bringing in foreign investors.

All these facts are considered crucial as a clear vision on the project can only help MoF assess the extent of fund available at home and from other sources, and determine the extent of fund deficit, among others, and finally decide on the most cost-effective option.

“Such details are critical for it will help us set the tone for further dialogue with Exim Bank,” said the source.

Irrespective of what MoE will forward, MoF says it is not eager to discuss the proposal of commercial loans because the existing foreign aid policy and other related regulations are silent on the country taking commercial loans. “We need a cabinet decision to take the talks ahead in this regard,” said the source.

So far, Nepal has been accepting loans under credit line facility only, as interest on such loans is low -- ranging from less than a percent to 1.75 percent per annum -- and grace period is longer.

If the government took commercial loans, it would need to pay interest in a range of 4 to 5 percent. This will render the project costly. “An even bigger question is: can we rest assured that loans taken against higher interest rate will be spent efficiently and effectively? If not, taking such loans can cost the country dearly,” said another MoF official.

Given the situation, MoF has continued to request Exim Bank for the soft loans. The government had approached Exim Bank a few months ago, requesting it to pledge credit line of US$ 1.70 billion for developing the reservoir-type project. The bank has already expressed its interest in the project.
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IRD TO MONITOR PRIVATE HEALTH INSTITUTIONS
Kathmandu, 24 Feb.: Inland Revenue Department will start monitoring private health institutions to check whether they have been abiding by their tax compliances, according to its director general Tanka Mani Sharma, The Himalayan Times reports.

The department will mobilise teams to monitor private clinics, nursing homes and other health institutions under its drive to expand the tax base, he said. The department had recently decided to start specific market monitoring to control revenue leakage after it completed the monitoring of 2000 firms by mobilising 100 teams.

The monitoring teams will issue bills on the spot to private health institutions who are found to be avoiding tax liabilities of up to Rs 5,000, he said. “The teams will direct them to appear before the concerned Inland Revenue Offices if their tax liabilities exceed Rs 5,000.”

The teams will scrutinise transactions of health institutions to discourage the trend of evading tax compliances, Sharma said. “The department decided to monitor health institutions because most of them have been found to be avoiding their tax liabilities.”
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EXPORT, IMPORT GAP WIDENS
Kathmandu, 24 Feb.: The country imports almost seven times more than what it exports, according to the central bank. In the first six months of the current fiscal year, merchandise exports rose by 11.2 per cent to Rs 35.92 billion, whereas merchandise imports increased by 16.8 per cent to Rs 216.68 billion keeping the export-import gap at almost the same level, The Himalayan Times widens.

“Total trade deficit went up by 17.9 per cent to Rs 180.77 billion,” according to the central bank’s macroeconomic situation for the six months of the current fiscal year. “Trade deficit had declined by 1.3 per cent in the same period last fiscal year,” it said, adding that trade deficit with India increased by 9.4 per cent against a growth of 32.8 per cent in the same period of last fiscal.

Similarly, trade deficit with other countries increased by 36.7 per cent against a drop by 36.8 per cent in the same period last fiscal year. “In US dollar terms, the total trade deficit rose by 9.2 per cent to $ 2.30 billion during the first half of the fiscal year as compared to a growth of 2.8 per cent in the same period last fiscal year.” The central bank’s figures also revealed the export-import ratio drop to 16.6 per cent from 17.4 per cent a year ago.

However, the overall Balance of Payment (BoP) recorded the highest ever surplus of Rs 66.72 billion against a deficit of Rs 4.26 billion in the first half of the last fiscal year. “The current account registered a surplus of Rs 31.99 billion pushing the BoP upwards,” it said.

In US dollar terms, the overall BoP recorded a surplus of $ 851.6 million during the first six months of the current fiscal year against a deficit of $56.4 million in the same period last fiscal year. Similarly, the current account registered a surplus of $ 400.1 million compared to a deficit of $ 47.7 million in the same period last fiscal year because of the growth in remittance coupled with improvement in the service account.

Similarly, net service account witnessed a surplus of Rs 9.93 billion in contrast to a deficit of Rs 5.28 billion in the same period last fiscal year. “Under services, tourism income rose by 29.5 per cent, and the net transfer account registered a growth of 29.1 per cent to Rs 189.33 billion,” the figures revealed, adding that under transfers, while pension receipts declined by 5.6 per cent

to Rs 13.14 billion, workers’ remittance increased by 37.1 per cent to Rs 162.37 billion compared to a growth of 11.5 per cent in the same period last fiscal year, though on a monthly basis, remittance inflow declined by 2.7 per cent in December-January compared to its value a month ago.

In US dollar terms, remittance inflow increased by 26.7 per cent to $ 2.07 billion compared to a growth of 14.8 per cent in the corresponding period of the last fiscal year. Likewise, under the financial account, foreign direct investment (FDI) of Rs 5.09 billion was recorded compared to Rs 4.46 billion in the same period a year ago.

Inflation at 6.8 per cent

Though consumers are bearing the brunt of the price rise, the country’s year-on-year inflation as measured by the consumer price index (CPI) increased by only 6.8 per cent in mid-January 2011 against 11.3 per cent in the corresponding period of the last fiscal year, according to the Nepal Rastra Bank. “The index of food and beverage group, and non-food and services group increased by

four per cent and nine per cent respectively against an increase of 17.6 per cent and 6.2 per cent respectively in the corresponding period of the last fiscal year. Under the items of the food and beverage group, price index of ghee and oil sub-group rose by the highest rate of 15.6 per cent against an increase of 0.3 per cent in the same period of the last fiscal year, whereas the price index of fruits, which had increased by 26.7 per cent in the same period of last fiscal year, went up by 14.8 per cent only.
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DETAILS OF PRACHANDA, SUSHIL KORIALA MEET

Kathmandu, 24 Feb :
UCPN-Maoist chairman Pushpa Kamal Dahal ‘Prachanda’ and Nepali Congress (NC) president Sushil Koirala Thursday agreed to start the army integration process and resolve the disputed issues of the constitution soon., The Rising Nepal reports.
A meeting of the two leaders at Koirala’s residence in Maharajgunj also agreed to adopt a maximum flexibility to conclude the peace process.
According to Prachanda’s press advisor Santosh Poudel the two leaders agreed to speedily conclude the peace process.
He informed that the two agreed to resolve the disputed issues of the constitution from a top-level political deal.
Advisor Poudel said that the leaders were serious about settling the disputes over the constitution.
During the meeting, Maoist chairman Prachanda assured NC president Koirala that his party was serious to conclude the peace process.
He urged the NC chief to support the proposal of Nepal Army for integration of the ex-Maoist combatants.
Prachanda urged Koirala not to take issue with the Nepal Army but support the army integration process.
On the occasion, NC chief Koirala told Prachanda that his party would be flexible to conclude the peace and constitution drafting processes and added that the Maoists should implement the 7-point deal to resolve the disputed issues of peace and constitution.
Meanwhile, Deputy Prime Minister and Minister for Home Bijaya Kumar Gahchhadhar met CPN-UML influential leader KP Oli and talked about the ongoing political situation of Nepal.
The meeting was held at Oli’s residence at Balkot of Bhaktapur. During the meeting, the two leaders talked about the ongoing political deadlock and constitution drafting process.
According to sources, their meeting dwelt on the issues of army integration, disputed issues of constitutions and peace process.
Sources said that Oli suggested the DPM should work for a consensus politics to resolve the disputed issues.
On the occasion, the DPM said that the government had given high priority to conclude the peace and constitution writing processes.
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LEADERSOF BIG THREE AGREE TO PACKAGE SOLUTION WITHOUT BREAKTHROUGH AGREEMENT

Kathmandu, 24 Feb :
Kathmandu, 24 Feb.:Top leaders of three major political parties at a meeting Thursday agreed to work for a package solution to address the outstanding issues relating to peace, constitution, army integration, relief for the injured and handicapped UCPN-Maoist combatants and commissions on truth, reconciliation and disappearances, The Rising Nepal reports.
Their meeting, held at the Prime Minister’s official residence at Baluwatar, however, ended without making any other concrete decision.
Speaking with reporters, Maoist secretary CP Gajurel said that the leaders discussed peace process, new constitution, army integration and formation of the national consensus government.
"The meeting emphasized the need to conclude these within the remaining three months," said Gajurel.
The UCPN-Maoist, he said, stressed on taking the peace and constitution writing processes ahead simultaneously whereas Nepali Congress, the main opposition party, insisted that the peace process should be concluded before the promulgation of the constitution.
"There is a possibility that the meeting of the top leaders on Friday will reach a concrete decision on this," he said.
Leaders at the meeting agreed that Nepal Army should not be dragged into controversy by speaking for and against its proposal on army integration, Gajurel said.
Parliamentary party leader of NC Ram Chandra Paudel said that the tasks of the peace process and army integration would move ahead according to the 7-point pact inked earlier.
The meeting emphasized the need to create an environment of trust among the political parties, Paudel added.
"The meeting strongly raised issues with the government’s recent action of moving the tasks related to the peace process ahead via directives of the Ministry of Peace unilaterally," he said.
Paudel informed that the meeting also raised issue with the inconsistent implementation of the decisions made by the Army Integration Special Committee.
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